MEN might have you believe that most women spend their money on shoes and handbags.

But its actually their savings accounts – rather than the high street – that get the benefit of their hard-earned cash, according to a new study which reveals women are managing to build up larger savings cash pots then men, despite earning less, new research suggests.

The Halifax Savings Report found that women in Wales typically have £7,739 put aside, or 40% of their gross average earnings, compared with a figure of £7,562 for men, accounting for 23% of their typical salary.

In Wales the biggest average savings pot, £9,675, has been collected by savers in Powys.

Savers in Powys have also saved the most in comparison to average earnings, with savings equivalent to 46%.

Blaenau Gwent has the smallest average savings at £5,846.

Newport has the lowest saving rate in comparison to average earnings at 26%.

There is a wide variation in average balances between regions; the biggest savers are in East Anglia with an average balance of £9,172; the lowest average balances are in Scotland (£7,332) – a difference of 25%. The average for the UK is £7,788.

Halifax suggested women’s savings were likely to have been boosted by wealthier partners transferring cash into their names for tax purposes, as well as the numbers of older women inheriting money after their husbands had died.

Martin Ellis, economist at Halifax, said: “Two key themes emerge from the Halifax savings survey. Firstly, there is a wide variation in regional balances and secondly women appear to be saving more than men.

“Whilst women typically have slightly higher savings balances then men, the difference as a proportion of earnings is quite substantial. Female savers seem to be managing to devote more of their earnings to savings.

“Saving habits can differ greatly, with many savers putting away spare cash for an event such as a holiday or wedding, however, it is still important to plan for the long-term future, such as saving for retirement.”

Bridgend-based financial advisor Mark Ryan said he agreed with Halifax’s view that women’s savings may be higher because of couples trying to make tax efficiencies.

He said he recommend transferring savings into the woman’s name to his clients where the man works and the woman is a stay at home mum, in order to get the benefit of tax allowances.

Kevin Mountford, head of banking at Flintshire-based finance Webster moneysupermarket.com, said economic uncertainty meant people were starting to save more, and treating saving as a commitment like paying bills.

He said: “People are starting to squirrel away more money away because of the economic uncertainty and uncertainty over jobs, that’s not unusual. You can start a regular deposit account for £20 to £25 a month, you’re committing to pay that money in every month, it gives you more discipline.”

Mr Mountford said the tightening of credit means people are getting back into the habit of saving for the things they want, whether it is a holiday or a wedding.

However, Mr Ryan said some people were likely to be finding it hard to save at the moment due to rising living costs.

He said: “People are trying to accumulate savings, they’re trying to pay down credit cards and debts and over pay the mortgage but I think people are finding it hard to do everything. There seems to be a spectrum in society that I’ve seen, about 25% of the population in Wales are still doing fantastically well, still earning good wages, 50% right in the middle who are just enjoying the good life but not making any savings and 25% who are in absolute dire straits. I think the majority of us are in the 50% middle band who have a nice life but we find it hard to save as much as we’d like to into savings or pensions.”